Nano Mobile Healthcare, Inc f/k/a Vantage Mhealthcare Inc (OTCMKTS:VNTH) Bounces
Nano Mobile Healthcare, Inc f/k/a Vantage Mhealthcare Inc (OTCMKTS:VNTH) has seen worse days. Up until about a week ago, it was smashing through 52-week lows on a daily basis. The volumes were tiny and the slide which had been going on for quite a while suggested that the ticker could soon find itself in the triple-zero range – something that was unthinkable until a few months ago.
Then, however, after hitting its all-time lowest close of $0.0017 on October 6, it bounced. The run isn’t quite as explosive as you’d expect from a sub-penny OTC ticker, but after three consecutive green sessions, VNTH closed last week’s trading with a price of $0.0024 per share. The volumes are growing as well which goes to show that more and more people are ready to put their money on the line. Why?
That’s a tricky question. VNTH‘s latest press release is more than a month old now, there are no new filings, and there isn’t even a paid promotion. So, the factors that normally push penny stocks in the right direction are nowhere to be found. There seems to be a split opinion among investors around the reasons for VNTH‘s surge. Some say that the bounce was caused by technical factors while others reckon that it’s all due to an upcoming press release that, rumor has it, is going to be extremely positive.
Whatever the reason, people are willing to buy shares which means that we must now take a look at the company and find out if there’s anything worth keeping in mind. Sadly, information is not exactly abundant.
The company said a couple of weeks ago that it will be late with its 10-K for the period ended June 30 which means that the latest financials are now more than six months old. They’re quite alarming too:
- cash: $69,972
- current assets: $80,500
- current liabilities: $1,525,465
- NO revenues since inception
- quarterly net loss: $673,676
The belated 10-K also means that investors aren’t sure what the share structure is. What they do know is that there were 217 million shares issued and outstanding at the end of May and they also know that last month, the management team retired about 117 million of them. Theoretically speaking, the O/S count should currently be sitting at around 100 million, but the huge amount of convertible debt outstanding at the end of March suggests that it might be a little bit higher than that.
As is often the case, the toxic notes are convertible into common shares at discounts that range from 42% to 50%. Some favorable conversion terms, you have to agree, and, naturally enough, the note holders are taking advantage of them. On April 6, for example, when VNTH‘s market price hovered between $0.047 and $0.059, a total of $20,000 worth of debt was converted into 1,333,333 shares of common stock which pushes the conversion rate down to just $0.015 per share.
So, to sum it up, investing in VNTH is not exactly risk-free. In fact, at least for the time being, the only thing that could draw you to the stock is the fact that the technology the company wants to commercialize was first introduced by none other than NASA. The infrequent progress updates and the horrifying balance sheet, however, suggest that the products are not on the brink of hitting the market. Unfortunately, as we established already, the same can not be said about some discounted shares that are floating around.
